First term: 1981–1988
In the presidential election of 10 May 1981, François Mitterrand became the first socialist President of the Fifth Republic, and his government became the first left-wing government in 23 years. He named Pierre Mauroy as prime minister and organised a new legislative election. The Socialists obtained an absolute parliamentary majority, and four Communists joined the cabinet.
The beginning of his first term was marked by a left-wing economic policy based on the 110 Propositions for France and the 1972 Common Programme between the Socialist Party, the Communist Party and the Left Radical Party. This included several nationalizations, a 10% increase in the SMIC (minimum wage), a 39-hour work week, 5 weeks holiday per year, the creation of the solidarity tax on wealth, an increase in social benefits, and the extension of workers' rights to consultation and information about their employers (through the Auroux Act). The objective was to boost economic demand and thus economic activity (Keynesianism), but the stimulative fiscal policy implemented by the Mauroy government was in contradiction with the constrained monetary policy implemented by the Bank of France. However, unemployment continued to grow, and the franc was devalued three times.
Old age pensions were raised by 300 francs per month to 1,700 francs for a single person and to 3,700 francs for a couple, while health insurance benefits were made more widely available to unemployed persons and part-time employees. Housing allocations for the low-paid were raised by 25% in 1981, and in the two years following May 1981 family allowances were increased by 44% for families with 3 children and by 81% for families with 2 children. In 1981, the purchasing power of social transfers went up by 4.5% and by 7.6% in 1982. In addition, the minimum wage (which affected 1.7 million employees) was increased by 15% in real terms between May 1981 and December 1982. Also, between 1981 and 1983, the basic pension benefit for elderly poor persons was raised by 62.%
Major efforts were made to improve access to housing and health care, while the government also attempted to tackle working-class under-achievement in schools by reinforcing the comprehensive system, modernising the curriculum and reducing streaming. As a means of increasing political participation, the government increased the financial allowances of local politicians, who also became entitled to paid leave from their jobs to attend courses in public administration. Allowances for the handicapped were improved, while improvements were also made in the pay and conditions for those serving in the army. A decree of January 1982 provided for "solidarity contracts" whereby firms would be subsidised for introducing part-time work or early retirement if they also allowed the creation of new jobs, while a decree of March 1982 provided employees with the right to retire at the age of 60 on 50% of average earnings during their 10 best years of employment. In 1983, legislation was passed to encourage greater equality in the private sector. Firms now had to make an annual report on the training opportunities and employment conditions for women and present a statistical analysis of their position in the firm, whilst the works committee had to ensure that equality-promoting measures were taken. In addition, a new benefit was introduced for unemployed workers who had exhausted their eligibility for unemployment insurance. In December 1982, a law was passed that restored to workers the right to elect administrators to social security funds, which had been eliminated by Charles De Gaulle in 1967.
Mitterrand continued to promote the new technologies initiated by his predecessor Valéry Giscard d'Estaing: the TGV high-speed train and the Minitel, a pre-World Wide Web interactive network similar to the web. The Minitel and the Paris-Lyon TGV line were inaugurated only a few weeks after the election. In addition, Government grants and loans for capital investment for modernisation were significantly increased. François Mitterrand passed the first decentralization laws, the Defferre Act.
After two years in office, Mitterrand made a substantial u-turn in economic policies, with the March 1983 adoption of the so-called "tournant de la rigueur" (austerity turn). Priority was given to the struggle against inflation in order to remain competitive in the European Monetary System. Although there were two periods of mild economic reflation (first from 1984 to 1986 and again from 1988 to 1990), monetary and fiscal restraint was the essential policy orientation of François Mitterrand's presidency from 1983 onwards. Nevertheless, compared to the OECD average, fiscal policy in France remained relatively expansionary during the course of the two François Mitterrand presidencies.
In 1983, all members of the general pension scheme obtained the right to a full pension at the age of 60 payable at a rate of half the reference wage in return for 37.5 years contribution. The government agreed at the same time to improve the pension position of some public sector employees and to increase the real value of the minimum pension. In addition, later negotiations brought retirement at 60 years into the occupational schemes although the financial terms for doing so could only be agreed for a 7-year period. A comparison between 1981 and 1986 showed that the minimum state pension had increased by 64% for a couple and by 81% for one person. During that same period, family allowances had increased by 71% for three children and by 112% for two children. In addition, the single-parent allowance for mothers or fathers with one child had been increased by 103% and for two or more children by 52% for each child.
In order to mark the importance of the problems of the elderly, the government appointed a Secretary of State (attached to the Ministry of Social Affairs and National Solidarity) to carry special responsibility for them, and in an effort to try to relate policy to the felt needs of the elderly, it set up a central advisory committee to examine social policy from their point of view and carry out special studies and enquiries. This body became especially concerned with monitoring the attempts at coordination and encouraging policies which were aimed at helping the elderly stay at home instead of entering residential care.
In the field of health care, some prescription charges were abolished, hospital administration was decentralised, workers' rights in the health service were reaffirmed, and equipment was provided for researchers. From 1983 onwards, wage-earners who had contributed to a pension fund for 37.5 years became eligible to retire on a full pension. This right was extended to the self-employed in 1984 and to farmers in 1986. People who had retired at the age of 60 were, however, not initially eligible for reductions on public transport until they reached the age of 65. The qualifying age for these reductions was, however, reduced to 62 in 1985. A number of illegal immigrants had their position regularized under the Socialists and the conditions pertaining to residence and work permits were eased. Educational programmes were implemented to help immigrant communities, while immigrants were allowed the right to free association. The Socialist government also opened up talks with the authorities in some of the main countries of origin, easing nationality rules in the public sector, associating representatives of migrant groups with public authority work, and establishing an Immigrants Council in 1984.
Although the income limit for allowances varied according to the position of the child in the family and the number of dependent children, these ceilings were made more favourable in cases where both parents were working or where a single parent was in charge and were linked to changes in wage levels. Those taking parental leave to care for three or more children (provided that they fulfilled the rules for eligibility) also received certain benefits in kind, such as a non-taxable, non-means-tested benefit and priority on vocational training courses. A new boost was also given to research into family problems including an interest in the effects of changing family structures, of women’s employment and the impact of local social policies on family life. In addition, a law on equal opportunities in employment was passed in July 1983 which prohibited all forms of unequal treatment regardless of the circumstances, together with providing for positive action plans to be established in major companies. In January 1984, a decree was made granting state aid to companies which implemented equality plans for staff. That same year, a law was passed that gave the regional Caissess des Allocations Familiales the task of collecting unpaid alimony, initially for lone parents and subsequently for remarried or cohabiting mothers.
In the field of education, more resources were devoted to the educational system, with the education budgets of 1982, 1983, and 1984 increasing by approximately 4% to 6% per year above the rate of inflation. From 1981 to 1983, the corps of teachers was increased by 30,000. Authorization was restored for a number of advanced undergraduate and graduate programmes which the previous centre-right minister Alice Saunier-Seité had rejected on grounds of economy and "rationalization" of resources. Numerous initiatives were carried out such as the teaching of civics, the reintroduction of the teaching of French history and geography at the primary level, the introduction of new professional degrees, a partnership between schools and enterprises, and the introduction of computers in classrooms. Priority areas were set up in 1981 as part of a systematic effort to combat underachievement in schools, while technical education was encouraged. In addition, nursery education was expanded, while efforts by the Socialists to promote joint research between industry and the research agencies increased the number of such contracts by half each year between 1982 and 1985, with a 29% increase in joint patents. The baccalauréat professionnel, introduced in 1985, enabled holders of a Brevet d'études professionnelles (or in some cases of a Certificat d’aptitude professionnelle) to continue for another two years and study for the baccalauréat.
Several measures were taken to put an end to the discrimination of homosexuals and repeal legal practices that repressed them. The Minister of the Interior, Gaston Defferre, put an end to the registration of homosexuals, and the Communist Jack Ralite, Minister of Health, removed homosexuality from the list of mental disorders. The government also introduced the passage of the sexual majority to 15 years for all, abolishing the distinction, introduced in 1942, in the age of consent between homosexual and heterosexual relations. Homosexual lifestyle ceased to be a clause for cancellation of a residential lease.
Mitterrand abolished the death penalty as soon as he took office (via the Badinter Act), as well as the "anti-casseurs Act" which instituted collective responsibility for acts of violence during demonstrations. He also dissolved the Cour de sûreté, a special high court, and enacted a massive regularization of illegal immigrants. Tighter regulations on the powers of police to stop, search and arrest were introduced, and the "loi sécurité et liberté" (a controversial public order act) was repealed. In addition, the legal aid system was improved.
In 1984, a law was passed to ensure that divorced women who were not in receipt of maintenance would be provided with assistance in recovering the shortfall in their income from their former husband. By 1986, particular attention was being focused on assisting women in single-parent families to get back into employment, in recognition of the growing problems associated with extra-marital births and marital breakdown. Parental leave was extended to firms with 100 employees in 1981 (previously, parental leave provision had been made in 1977 for firms employing at least 200 employees) and subsequently to all employees in 1984. From 1984 onwards, married women were obliged to sign tax returns, men and women were provided with equal rights in managing their common property and that of their children, and in 1985 they became responsible for each other’s debts.
Childcare facilities were also expanded, with the number of places in crèches rising steadily between 1981 and 1986. In addition, the minimum wage was significantly increased. From 1981 to 1984, the SMIC rose by 125%, while prices went up by only 75% during that same period. Various measures were also introduced to mitigate the effects of rising unemployment. Between 1981 and 1986, there had been just over 800,000 young people placed on special work schemes, 800,000 early retirements, 200,000 enterprise allowance successes, and 30,000 retrained workers from declining industrial sectors.
With respect to cultural policies, grants were allocated to non-profit associations and community cultural initiatives, Mitterrand liberalized the media, created the CSA media regulation agency, and authorized pirate radio and the first private TV (Canal+), giving rise to the private broadcasting sector.
In terms of the theatre, some transfer of resources was made from the subsidy of the national theatres to the support for theatre companies which did not necessarily have an institutional home. A significant investment was made in music education with the creation of 5 new music schools in the departments and the revamping of the Conservatoire National de la Musique at Lyon, while the range and capacity of performance facilities in Paris were considerably increased, with the Cite Musicale de la Villette and the Opera de la Bastille allowing for specialist performance in a way that was lacking in Paris previously, and a 2,000 seat concert hall called le Zenith, which was designed primarily for rock music concerts but adapted for all uses.
The Socialists continued the policies of their predecessors with the Grand Louvre project and the opening of the Picasso Museum at the Hotel Sale, while the museum budget was quadrupled and particular sums were set aside for the first time for large regional projects including the establishment of a number of new museums in the provinces such as the Ecomuseum at Chartres and the Museum of Prehistory at Carnac. A Fonds Regional des Acquisitions was established to assist provincial museums in the purchase of works of art, while the state actively continued an existing policy of encouraging bequests in lieu of death duties.
Libraries and publishing benefited from new thinking and an injection of funds, while aid to authors and publishers was restructured and book prices were fixed once again, with the objective being to assist smaller publishing houses and specialist bookshops. The network of regional lending libraries was significantly reinforced, while financial assistance was provided for the export of French books. In addition, archaeology, ethnography and historical buildings and monuments all benefited from the general increase in resources.
The Left lost the 1983 municipal elections and the 1984 European Parliament election. At the same time, the Savary Bill, to limit the financing of private schools by local communities, caused a political crisis. It was abandoned and Mauroy resigned in July 1984. Laurent Fabius succeeded him, and the Communists left the cabinet.
In terms of foreign policy, Mitterrand did not significantly deviate from his predecessors and he continued nuclear weapons testing in
the South Pacific in spite of protests from various peace and environmentalist organizations. In July 1985, French agents sank the Greenpeace-owned ex-trawler Rainbow Warrior while it was docked in Auckland, New Zealand which the group had used in demonstrations against nuclear tests, whaling, and seal hunting. One Greenpeace member was killed, and when news broke of the event, a major scandal erupted that led to the resignation of Defence Minister Charles Hernu. France apologized with a subsequent payment of $8.16m reparations to Greenpeace in damages, NZ$13m to the New Zealand Government and a significant amount to the relatives of the deceased.
Before the 1986 legislative campaign, proportional representation was instituted in accordance with the 110 Propositions. It did not prevent, however, the victory of the Rally for the Republic/Union for French Democracy (RPR/UDF) coalition. François Mitterrand thus named the RPR leader Jacques Chirac as Prime Minister. This period of government, with a President and a Prime Minister who came from two opposite coalitions, was the first time that such a combination had occurred under the Fifth Republic, and came to be known as "Cohabitation".
Chirac mostly handled domestic policy while Mitterrand concentrated on his "reserved domain" of foreign affairs and defence. However, several conflicts erupted between the two. In one example, Mitterrand refused to sign executive decrees of liberalisation, obliging Chirac to pass the measures through parliament instead. François Mitterrand also reportedly gave covert support to some social movements, notably the student revolt against the university reform (Devaquet Bill). Benefiting from the difficulties of Chirac's cabinet, the President's popularity increased.
With the polls running in his favour, Mitterrand announced his candidacy in the 1988 presidential election. He proposed a moderate programme (promising "neither nationalisation nor privatization"), advocated a "united France," and laid out his policy priorities in his "Letter to the French People." He obtained 34% of the votes in the first round, then faced Chirac in the second, and was re-elected with 54% of the votes. Mitterrand thus became the first President to be elected twice by universal suffrage.
